Tag: Economics

Short-run supply is usually ________ elastic than momentary supply and ________ elastic than long-run supply?

Select ONE answer:

1. less; more
2. more; more 
3. more; less
4. less; less

Explain how changes in the costs of production may cause a shift in the supply curve:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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When the price of milk goes up as a result of a rightward shift of the demand curve for milk ……. ?

Select ONE answer:

1. total revenue will remain constant only if milk has a unitary price elasticity of supply.
2. total revenue will increase only if milk is inelastic in supply.
3. total revenue will decrease only if milk is elastic in supply.
4. none of the above.

What is the distinction between movements along a supply curve and shifts of a supply curve?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

If the supply curve is vertical then supply is ……. ?

Select ONE answer:

1. relatively elastic.
2. relatively inelastic
3. perfectly inelastic.
4. perfectly elastic. 

What is the implication on supply of producer objectives and decisions?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

A supply curve that is horizontal reflects a supply that  ……. ?

Select ONE answer:

1. is elastic.
2. has a zero elasticity. 
3. is inelastic.
4. is unit elastic. 

Explain how changes in size and age distribution of the population may cause a shift in the demand curve:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.

The concept of elasticity of supply measures the responsiveness of the ……. ?

Select ONE answer:

1. quantity supplied to a change in price.
2. quantity demanded to a change in quantity supplied.
3. price to a change in quantity supplied.
4. quantity supplied to a change in quantity demanded.

Explain how changes in advertising and branding may cause a shift in the demand curve:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.

Inferior goods are goods ……. ?

Select ONE answer:

1. are consumed only by people with inferior taste.
2. for which the demand increases when income increases.
3. that are inferior in quality.
4. that have a negative income elasticity of demand.

Explain how changes in tastes and fashions may cause a shift in the demand curve:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

The income elasticity of demand for restaurant meals is 1.61. So……. ?

Select ONE answer:

1. if income increases by 16.1 percent, the quantity demanded of restaurant meals will
   increase by 10 percent.
2. if income increases by 10 percent, the quantity demanded of restaurant meals will increase
   by 16.1 percent.
3. restaurant meals are an income elastic normal good.
4. Both answers B and C are correct.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.